The Kenosha telegraph. [volume] (Kenosha, Wis.) 1860-1888, 1887-09-09
A BIG DEAL.

the ID. & o. Road to a SSneiSste of
American and Foreign Capitalists 4
transaction Involving SI0,OOO,OOO-
Story OF tlrs Deal.
NEW YoRk, Sept Sitter long confer
6nce Of capitalists Thursday at tie office Of
Drexel, 1iG+gaH S Co, the following was is
sued by the firm nanieS'
"Aprehmnary contract has been eAecTted to;
Say between the Baltimore & Ohio Railr925
Company; Barring Bros. s Co. and Brown, Ship
ley s Co. LONDON, and their a.led houses on
this siass This contract provides for the
negotiation of IS, 0O0oso Baltimore s Ohio con-
solidated IS and s5,00005D HaitiH2ere q Ohio
preferred stock for the purpose of paying on
the estiss floating debt of the company and
placing It on a Sound financial basis The con-
ditioEs are as follows! l. The verihcation OF
statements, etc., as made. z. Tlsat the manage
agement of the company shall be pise0d in
competent hands, satisfactory to the Syn
ai6ats. 8. That satisfactory contracts
shall Do made between the Bal
timore & OhiS and the other roads
for the New York business, which shall remove
ali aStagonisffs between them on the subject
and insure tic permanent working of the Balti.
more s. Ohio in entire hartn6nS with the other
trunk lines; also avoid the CONSTRUCTION OF en-
pEnsive parallel lines north and east III Phila-
are Drexel, Morgan & Coz Brexel s. Co., Brown
Bros. & Co."
t4aTs YeRK. Sept, 3-The mysterious Move
ment of the stJtN market during the last
week and the continued rAnaors from all
sources that some important developments
were hanging over the railroad and teles
graph World were explained by facts which
werG itia8e public Tate yesterday afternoon.
After breaking tft his Negotiations with
Ives Co. Mr.. Garrett Vent to LoidoH, and
yesterday deal was announced 66RPafa=
BILE IN Importance with the West Shore se6<
tseInent with the New York Central and the
forming If tlfe Reading syndicate to reor-
ganize that conipaay Both Of these deals
were carried through by DI6ael; Morgan i
Co. The contamination of the Cons
tract made yesterday was held in
allegiance until his opinion was OBJ
tai}}ea orr the question of whether the ster-
ling loan made ~ the Baltimore d Ohio
railroad covered the telGgfabt system of
the company. After studying the d'tess
ton in all its aspects he decided that
the telegraph lines were free from all
Re1's, and ON Receiving this opinion the
agreeiaent III the iiature OF prelimi-
nary contract Vas executed: The parties
to the contract are the Baltimore 81 Ohio
Railroad Company and SyndicatS sefas
posed of j. S. Morgan & Co., Barring Bros. Il
CO; brown, Shipley & Co., of London;
Drexel, Morgan d 60, Kidder, Peabody &
Co., and Brown Bros, sf this city, and
Drexel & Co., of Philadelphia
The most important point in the contract
provides that the management of the COM
pahy shall be placed in competent hands
satisfactory to the syndicate. Who the men
are who SFiIl be satisfactory to the syndicate
can not be asceftained but A. J. CasSat, the
vice president of the Pennsylvania railroad,
is generally believed to be Booked as
Mr. 9arrett's successor. Satisfactory cons
tracts are also TO be made with the Penn
sylv ania & Reading RAILROADS on all bust
ness north of Philadelphia, and with all
other trunk lines entering New York, by
which all aetagonism will be removed and
insure the permanent working of the Balti-
more q Ohio in harmony With the other
trunk lines. ............-
Tn addition to these contracts the lines in
process IF construction from Philadelphia
TO New York will be Suspended in their con-
struction just as they now Btdhd and the
work on Staten Island stopped. In c0fsids
Grafton Of their contracts being signed and
with tie certrel in their hands the syndi-
cate agrees to relieve the railroad from it's
present embarrassment by pf8siaing $10,-
coo, 900 with which to take up the Heating
debt This will be represented by So, 000,-
600 In Baltimore & Ohio preferred stock.
The floating debf, as it stands, amounts to
81, 10000 mostly ii the shape OF certif-
Gates of Indebtedness, scrip and hotes, OF
this amount $4, 600, 900 is said to have ni&z
tured ON the LIST inst.
Ole Of the parties to the syndicate au-
thorized the f6llo#i3g statement as the out
come of the contract:
1.-The position of the Baltimore & Ohio fails
road as an Ishmaellte in the railroad, sleep ng-
car, express and telegraph business is given
Dip. All the outside enterprises will be sold to
parties to whom they will be valua bic. The
Western Union will CONTROL if it does not buy,
the telegraph hines; &nd the Pullman Palace
Car Company VIII take the sleeping-car bust
ness The express business has already gone
to the United States Express Company The
affa RS of the "a lr6ad company will be entirely
reorganized and piacs5 upon sound financial
basis"
Drexel Morgan & Co. were in direct cor
respondence with their house in London and
Philadelphia, and late last evening con-
hfmed the statements that the contracts
and negotiations given above had just been
signed Outside of the facts given above
they declined to speak
The clatise of the contracts suspending all
work on the extension from Philadelphia to
New York is believed to be the Keynote of
the s5hdieate's interest in the negotiations
and is construed to mean that the Baltimore
& Ohio railroad, when dYested of all ex-
traneous enterprises. will be operated prac-
tically by the Pennsylvania railroad
New YORK, Sept 3.-The San this morning
says:
"As to the telegraph system If the Baltimore
& Ohio Company it may be stated az fact
that Jay Gould has under consideration q
proposition for the transfer of the system to
him or to the Western Union Company
for consideration equal to about one
half the cost of the system as it is figured upon
the Baltimore g. Ohio books-that is to say, it
has been offered to him at about So, 100000. The
offer does not include all the lines upon the
Baltimore g. Ohio railroad, but provision is
made for their operation similar TO that which
is made with other telegraph companies"
PHILADELPHIA, Sept 3.-In speaking Of
the negotiations in regard to the Baltimore
& Ohio railroad J. Pierrepont Morgan, who
effected the settlement of the West Shore
railroad difficulty with the New York
Central railroad and several other similar
important troubles between the trunk lines,
said:
1T is scarcely possible to overestimate the
Importance Of these negotiations, particularly
as regards the trunk lines. The syndicate is
composed Of the houses mentioned, and they
are each and all of them interested in the trunk
lines through the various negotiations which
they from time to time nave made. They are
now united to protect these interests as far as
their influence and power lies"
HELD FOR MANSLAUGHTER.
General Manager HicksOn, of the Grand
Trunk Road, Indicted.
Cor,t o Ioenr,l, Iicl1